Our Sankalp of ending culture of exploitative micro finance lending is close to fruition: Assam CM Sarma

Guwahati (Assam) [India], October 16 (ANI): Assam Chief Minister Himanta Biswa Sarma on Monday said that the government's 'Sankalp' of ending the culture of exploitative microfinance lending is close to fruition.
The Assam Chief Minister said after he attended the ceremonial distribution of relief under "Category-III" of the Assam Microfinance Incentive and Relief Scheme (AMFIRS) 2021 for beneficiaries of Dibrugarh district.
Taking to the social media platform, X, Sarma said, "With the ashirwad of Hon'ble PM Shri @narendramodi ji, our Sankalp of ending the culture of exploitative micro finance lending is close to fruition. With today's distribution of no-due certificates, Assam has invested Rs2,000 cr to clear dues of 12 lakh borrowers since 2021. The creditworthiness of these women entrepreneurs who were once trapped with exorbitant interest rates now begins with a clean slate. To support their industrious aspirations, through our SHG network, Assam government will henceforth organise seed funding of Rs10,000 onwards."
Dibrugarh district has a total of 22,172 beneficiaries under the Category-III relief of AMFIRS 2021.
Borrowers whose accounts had turned non-performing assets (NPA) as of March 31, 2021 and had an outstanding principal amount of up to Rs 25,000 are deemed to be eligible for benefits under Category - III of AMFIRS 2021.
The state government is shelling out a total of Rs 291 crore as compensation to the lenders (microfinance institutions) and this move is expected to benefit a total of around 2.2 lakh borrowers from across the state.
In return, the concerned microfinance institutions shall issue "no due certificate" to the borrowers, thus making the latter credit-worthy again under the formal financial system.
Speaking at the event, Chief Minister Sarma expressed deep satisfaction over as many as 2.2 lakh female microfinance and bank loan borrowers again becoming credit-worthy after being conferred with the "no due certificates" by the lender institutions.
CM Sarma said the main objective behind the launch of AMFIRS 2021 was to provide relief to borrowers who had availed small loans from microfinance institutions and the formal banking system but owing to certain circumstances, the borrowed amount couldn't be repaid either partially or fully.
He said during the campaigning in the run-up to the 2021 Assam Assembly elections, many women came up to him complaining about harassment by the lenders owing to their inability to repay the loan they had availed.
During the election campaigns, he promised to look into the grievances of the female borrowers of loans from microfinance institutions, Sarma said, adding that after becoming the Chief Minister of Assam, he decided to formulate a workable solution to the issue. Through the categorisation formula, till now a total of more than 20 lakh borrowers of loans from microfinance institutions have benefited from AMFIRS 2021, he added.
Sarma today also made an appeal to the womenfolk of the State to desist from taking loans from microfinance institutions, as the interest rates charged by them are impractically high and it is nearly impossible for the borrowers to repay their loans with that sort of interest rates.
CM Sarma also appealed to the womenfolk to become financially self-reliant by making proper use of the amount of Rs 10,000 the state government shall be providing to each member of women's self-help groups. Those who use the amount for productive entrepreneurial purposes shall be provided with another Rs 15,000, Assam CM added.
Speaking on Khel Maharan and Sanskritik Mahasangram programmes, Assam CM urged all those present at the event to extend their wholehearted support towards the above two upcoming events so that hidden talents in the field of sports and performing arts are able to find a suitable platform to showcase their talents.
Union Minister of State for Petroleum Rameswar Teli, Assam Minister of Industries and Commerce Bimal Borah, Members of Legislative Assembly Prashanta Phukan, Chakradhar Gogoi, Binod Hazarika, Ponakon Baruah, Terash Gowala, along with a host of other dignitaries, were present at the event. (ANI)